GS Salaries: Why Are Government Paychecks So Low?

Ever looked up GS salaries and wondered why the numbers feel so... underwhelming? You're not the only one. If you Google these pay rates, you'll see federal jobs can pay less than similar roles in the private sector—especially for entry-level gigs. It's a real head-scratcher, especially when these jobs often require degrees, background checks, and mountains of paperwork.

Here’s the main thing: the government uses a set pay system called the General Schedule (GS). That means almost every pay bump or starting salary is locked in by law. It's not like tech or business, where you can haggle or jump between jobs for a fat raise. If you want to move up, you must either stick around for years or land a promotion—no shortcuts. Cost-of-living adjustments happen, but they're tiny. Most years, even with inflation climbing, the bump is way below what you’d want to see on your paycheck.

• How the GS Pay Scale Works
• Reasons Behind Low GS Salaries
• Hidden Benefits and Downsides
• Tips for Making Government Jobs Pay Off

How the GS Pay Scale Works

The General Schedule, known as GS, is the standard pay system for most federal civilian employees. Instead of negotiating, federal workers have set pay grades and steps—no surprises and no mystery. There are 15 GS grades (GS-1 is the lowest, GS-15 is the highest). Within each grade, there are 10 steps. Your grade is mostly based on the job’s required level of education, experience, or responsibilities. The step number depends on how long you’ve worked in that grade or outstanding job performance.

Moving up a step usually takes one year early in your career, but later steps require two or three years per jump. It sounds structured—which it is—but it also means waiting years to see a decent pay bump. Don’t count on big annual raises either.

The pay amounts change depending on where you work. (Living in San Francisco? Expect more on your paycheck than folks in Kansas.) This is because of locality pay. The Office of Personnel Management (OPM) updates these adjustments yearly, trying to keep up with rising costs in cities with higher living expenses. But the reality is, adjustments usually lag behind actual rent and price hikes.

Here’s what the current (2025) starting pay looks like for selected grades:

One big thing about GS salaries: promotions to a higher grade usually come with about a 10-15% pay increase. But most people spend a few years at each grade. Jumping grades too quickly is rare unless you have advanced degrees or special skills the agency needs badly.

• Grades and steps are fixed, so what you see is what you get.
• Locality pay adds a little if you live in a pricey area, but rarely enough to match private sector boosts.
• Raises from Congress or the President (aka cost-of-living increases) are usually only 1-3% per year.

If you’re looking to climb fast or earn big early, the GS ladder is a slow climb. But now you know how it all works—no guessing, just a strict system that everyone follows.

Reasons Behind Low GS Salaries

The first thing to realize: the government isn’t out to get federal workers. The GS salaries look low mostly because the whole system is tightly controlled by Congress. Lawmakers set strict pay limits, so big raises just don’t happen unless Congress allows it. Private companies can throw money around to fight for talent. Federal agencies? Nope. Every single raise or adjustment has to work its way through layers of rules and budget fights.

This system actually started way back in 1949, and not a lot has changed since then. The GS pay chart is public—you can Google it—but what you see is what you get. This isn’t like a start-up throwing in bonuses and stock options. The government’s job is stability, not outbidding everyone else.

Another issue is the pay gap with the private sector. The U.S. Office of Personnel Management found in 2023 that federal employees make, on average, about 27% less than private-sector workers for similar jobs. One report from the Partnership for Public Service put it like this:

“The federal government struggles to keep up with private industry pay, and it becomes harder every year to recruit top candidates for critical roles.”

Cost-of-living adjustments (COLAs) aren’t keeping up with inflation either. In some years, the COLA is under 2%, while prices for gas, rent, and food often climb much faster. If you’ve ever wondered why your paycheck feels smaller even when your GS step goes up a notch, that’s why.

Locality pay was supposed to help by boosting salaries in expensive regions, like San Francisco or DC. But even then, those adjustments often lag far behind what people actually need to cover rent and basic expenses in those zip codes.

Bottom line: low GS salaries are not really about stinginess, but about old rules that don’t react fast enough to what’s happening out there in the real job market. The good news is the paychecks are reliable and you won’t get random pay cuts or late payments. The bad news—getting a raise or a bump to your step? It's a slow and uphill trek.

Hidden Benefits and Downsides

So, if GS salaries don’t make you jump with joy, why do people stick with government jobs? It’s simple: there are some less obvious perks tied to working for Uncle Sam. But, of course, there are a few headaches too.

First off, the benefits package in federal jobs is hard to beat. Most government employees get solid health insurance plans, and you pay a lot less out of pocket than many private sector workers. Plus, the retirement options—like the Thrift Savings Plan (TSP), which works a lot like a 401(k)—come with automatic government contributions. Don’t forget about generous paid leave. You start with about 13 days of vacation a year, and after a while, you can rack up as much as five weeks off, plus all the main federal holidays.

Job security is the other big win. Layoffs and company bankruptcies in the private sector can put you out of work fast. With a federal job, once you pass probation, your job is a lot more stable. It’s not impossible to get fired, but it’s way less common than getting let go in the business world.

Now for the downsides—career growth isn’t always quick. Promotion is based on a combination of waiting your turn and checking the right boxes, not so much on stand-out performance. Raises and bonuses are smaller than what you see in private companies, and location matters a lot. Living in a pricey city like San Francisco or DC? Sure, you’ll get a higher “locality pay,” but it rarely keeps up with skyrocketing rent and expenses.

Here’s another tradeoff: with few exceptions, you can’t negotiate your pay. The salary bands are set in stone, so even if you have more experience or skills, you’ll likely start where everyone else does. And while that steady paycheck sounds nice, there’s not much you can do to speed up your income growth without moving around or waiting out the years.

Bottom line: working in the GS system can be great for stability and benefits, but you’ll want to weigh those against slower raises and limited flexibility. If you’re planning to make a career here, it makes sense to focus on areas where step increases and promotions happen faster, or where the perks truly make up for the salary gap.

Tips for Making Government Jobs Pay Off

Government paychecks won’t blow your mind, but there are ways to make your time in a federal job a lot more rewarding, both financially and in terms of quality-of-life perks. Here’s what works if you want to squeeze the most out of that GS salary band.

• GS salaries sound low, but watch for career ladders. Jobs listed as "GS-7/9/11" start at one level, but you can jump to the next grade each year if you hit performance marks. These steps matter; the difference between GS-7 and GS-11 is thousands of dollars.
• Location really matters. Working in places like San Francisco, Washington, DC, or New York means a fatter paycheck, thanks to locality pay (sometimes 20%-40% more). Check the official OPM tables before you apply.
• Don’t ignore the long game. Sick leave, federal holidays, health insurance, and retirement plans—these add up. The Federal Employees Retirement System (FERS) has been called one of the best in the country. Plus, the Thrift Savings Plan (TSP) is basically a 401(k) with low fees.
• If you have student loans, federal service gets you access to Public Service Loan Forgiveness (PSLF). Work 10 years, make your 120 payments, and the rest of your student debt could vanish. Make sure your loans qualify.
• Move around! Don’t sit in one agency for ages out of habit. Jumping roles across agencies or locations is often the fastest way to move up pay grades. The hiring process is slow, so apply early and cast a wide net.

Here’s a peek at typical locality pay differences for GS-12 Step 1 (2025):

The bottom line? If you work the system—apply for ladder jobs, target high-pay cities, use every benefit, and don’t get stuck in one spot—you can make a government job pay more than most people think. It takes patience and hustle, but it can really work.